Oman’s largest cement manufacturer and one of the Gulf’s largest, Raysut Cement Company announced complete acquisition of Sohar Cement Factory LLC at a value of $60 million, following a letter of intent it signed early this year with Sohar Cement shareholders.
In a statement, Muscat Securities Market-listed Raysut said that it has purchased all of Sohar Cement’s shares effective May 19, 2019 and will immediately begin integration of the company located at the Sohar Industrial Estate in Oman.
"The acquisition of Sohar Cement forms part of Raysut’s ambitious plan to expand its capacity in 2019 to not only supply to its domestic higher demand Northern markets but also to service the rapidly growing markets, particularly in Africa and to focus on diversification and grow outside the Gulf region," said Raysut Cement chief executive Joey Ghose.
"We are looking at an aggressive expansion strategy from 2019 with a view to eventually expand our production to 20 million tonnes per annum," Ghose said.
He said the Sohar acquisition also includes taking over the 20% stake of Fujairah Cement in the company. This acquisition brings up Raysut Cements cement capacity to 6.4 million tons per annum.